Business, international

FRANCE: RETAILERS AND TELEVISION ADVERTISING

Article Abstract:

Although retailers are banned from television advertising in France, some think that large retailers' access to national television within the next five years is inevitable. This should be done gradually because suddenly opening television to retailers could upset the media, since large retailers represent 11% of advertising expenditures in France, all media combined, excluding television. Until the current legislation is modified, groups such as Ikea and Picard, which are both producers and retailers, are authorised to advertise on television as long as they advertise as a producer and make no reference to their stores. The retailers' transition to television is expected to happen if the French government authorises retailers to broadcast advertising on the future local channels. According to estimates, the retailers will initially broadcast corporate campaigns on television. The arrival of retailers will be a windfall for television channels because this could bring in around FFr 7bn in additional revenue.

Alliances & Acquisitions Les t nors europ ens s'activent

Article Abstract:

The major European retail groups appear to be accelerating their global expansion operations. Although Carrefour favours internal growth, the other major European retail groups are finding other ways to grow. Promod s and Ahold have chosen to acquire small retail chains, and others are opening stores in partnership with local retailers, although this method is losing ground to inter-group alliances. Intermarch and Spar Allemagne began the alliance movement a year ago, and Auchan has followed suit with Rinascente, while Promod s has allied with GS, Finiper and GB. Inter-group alliances promote synergy and the exchange of know-how as well as limiting financial commitments. External growth opportunities still exist in Europe. Average-sized retail chains may still be acquired for an affordable price.

Comment:

Europe: Major European retail groups appear to be accelerating their global expansion operations

FRANCE: FROMAGES FRAIS AND PETIT SUISSES

Article Abstract:

According to ACNielsen the turnover from petits suisses represented FFr 1.92bn for the twelve months ending 11 April 1999, calculated monthly, down 2.7% and fromage frais rose only 0.6%. However, the manufacturers marketing efforts and many innovations boosted the petits suisses 2% in the months of March and April 1999. On the fromage frais market, Yoplait is working on practicality with a recloseable cover, and Danone has positioned its Jockey brand on the nutritional function of fromage frais.